Investment Rating - The report gives a "Buy" rating for Aerospace Nanhu (688552.SH) [1] Core Views - Aerospace Nanhu is a rare leader in the domestic air defense early warning radar sector, benefiting from sustained domestic equipment demand and growth in military trade and civilian markets [1] - The company has a comprehensive radar manufacturing system and has been actively developing new products, achieving significant revenue growth and profit increases in recent years [1][50] - The radar equipment market in China is expected to reach 56.5 billion yuan by 2025, with Aerospace Nanhu positioned to benefit from this growth [1][36] Summary by Sections Company Overview - Aerospace Nanhu has a history of over 30 years in the defense radar industry, with a complete radar manufacturing system and a diverse product range including air defense early warning radars and air traffic control radars [1][18] - The company was established in 1989 and underwent significant restructuring and capital operations, culminating in its successful listing on the STAR Market in 2023 [1][18] Financial Performance - From 2019 to 2022, the company's revenue grew from 670 million yuan to 950 million yuan, with a CAGR of 12.6%, and net profit increased from 90 million yuan to 160 million yuan, with a CAGR of 21.8% [1][50] - In the first three quarters of 2023, the company achieved revenue of 510 million yuan, a year-on-year increase of 114%, and a net profit of 40 million yuan, compared to a loss in the same period last year [1][50] Market Demand - The demand for radar equipment is robust, driven by the modernization of military capabilities and the expansion of civilian applications [1][30] - The report highlights the potential for military trade and civilian market growth, with the company actively pursuing opportunities in these areas [1][73] Research and Development - The company has significantly increased its R&D investment, with the R&D expense ratio rising from 8.3% in 2019 to 19.8% in 2023, reflecting a strong commitment to innovation [1][53] - Aerospace Nanhu has successfully secured multiple contracts for new radar development projects, indicating the effectiveness of its R&D efforts [1][53] Investment Recommendations - The report forecasts net profits of 193 million yuan, 253 million yuan, and 327 million yuan for 2023, 2024, and 2025, respectively, with a target price of 22.50 yuan based on a 30x PE ratio for 2024 [1][2]
首次覆盖报告：我国稀缺防空预警雷达龙头，内需外贸两翼齐飞